Prince Warehouse grocery loan program marks 3rd year

CEBU, Philippines - Living up to its thrust as a sari-sari store-friendly merchandise chain, Prince Warehouse Club continues to support its network of sari-sari store owners with its micro-financing program that started three years ago, providing them with grocery loans to grow their businesses instead of cash credits.

During the launch of the Sari-Sari Store Festival 2013 that will be held next month, Prince Warehouse Club president Robert Go emphasized the need to support the growing sari-sari store industry that is considered to be one of the prime movers of the economic growth.

He added that those who are in the base of the entrepreneurial pyramid deserve more assistance in terms of financial help.

“It’s like a pyramid. Those on top who are already rich are less. Those who are in the base are growing but are still poor. Our intention is to help those at the bottom, they are the people who need our help,” he stated.

He said that banks and other financial institutions make it difficult for sari-sari store owners to apply for loan to be used as capital since the former require collaterals and other documents that the latter could not comply with.

He further noted that more than 90 percent who venture into sari-sari store business fail or go bankrupt due to lack of financial literacy and support.

“They do not have the discipline to manage their finances since they do not have a rolling capital. Most of them do not know how to run a business. That’s why we are here to help them,” Go said.

Through its Prince Warehouse’s micro-financing program Pangpuno Puhunan sa Prince (PPP), sari-sari store owners could avail of grocery loans amounting to P3,000 to P5,000 worth of goods instead of giving them cash.

According to Prince Warehouse Club chief operating officer Rhea Go, the micro-financing program is intended to support sari-sari store owners who lack capital for their businesses or those who have already progressed but wish to expand further.

She said that instead of giving out cash that could lead to financial mismanagement, they are converting the amount approved to be loaned to the borrower into goods.  (FREEMAN)